Giantec Semiconductor(SH:688123) Bank of China Securities·2025-11-07 06:40Investment Rating - The report maintains a "Buy" rating for the company [3][5] Core Insights - The company has shown steady growth in revenue and net profit for the first three quarters of 2025, driven by a continuous focus on high-value-added products and an expanding range of downstream applications [3][8] - The company is expected to achieve revenues of RMB 1.374 billion, RMB 1.771 billion, and RMB 2.267 billion for the years 2025, 2026, and 2027 respectively, with corresponding net profits of RMB 454 million, RMB 632 million, and RMB 836 million [5][7] Financial Performance Summary - For the first three quarters of 2025, the company reported revenue of RMB 933 million, a year-on-year increase of 21.29%, and a net profit of RMB 320 million, up 51.33% year-on-year [8] - The gross margin for the first three quarters of 2025 was 59.78%, an increase of 4.93 percentage points year-on-year [8] - The company’s quarterly performance in Q3 2025 included revenue of RMB 358 million, a year-on-year increase of 40.7%, and a net profit of RMB 115 million, up 67.69% year-on-year [8] Growth Drivers - The company has successfully increased shipments of DDR5 SPD chips, automotive-grade EEPROM chips, and high-performance industrial-grade EEPROM chips, which have contributed to its growth [8] - The introduction of automotive-grade NOR Flash chips to leading automotive electronics Tier 1 suppliers and the deployment of optical image stabilization (OIS) motor driver chips in mainstream smartphone brands have mitigated the impact of fluctuations in consumer electronics demand [8] - The company is strategically positioned in the AI sector, with its SPD chips being essential components in server memory modules, and its WLCSP EEPROM chips being widely adopted in AI glasses [8]